Deciding to step down from your position leading a company is difficult. But when the time is right and the decision must be made, how do you choose an internal successor who should lead your business into the future?
1. A Vision for the Future
For your business to succeed in the future, you have to assess where you want the company to go.
Should the company culture remain the same? Should the company grow vertically or horizontally? Will it need to be restructured to remain competitive? Is it possible that AI will impact how the business will evolve? Exploring these questions and others like them will help you create a list of qualities when choosing an internal or external successor.
2. Choosing A Unique Internal Successor
It is important to recognize that the successor you choose will not be your clone. While the person you choose should have the business’s best interests at the core of their decisions, they will be making choices based on the circumstances and facts that are relevant to situations you can’t anticipate.
Does the person share your values and philosophies and your belief in the company, even if those qualities are expressed or modeled in a way that differs from yours? This is an important question to ask when answering how to choose an internal successor.
3. Choosing an Internal Successor in the Family
If you believe that the best person to assume your leadership position is a family member, there is one question you must consider: Is that person truly the best choice or are you making an emotional and sentimental decision?
4. How to Choose an Internal Successor with Experience
You will no doubt choose someone with experience but remember that experience encompasses two key areas: industry experience and leadership experience.
Is the successor you are considering stronger in one than the other? Will they be able to grow the weaker skill?
5. Good Communication Skills in an Internal Successor
Good communication skills are critically important these days — so much so that they almost should be at the top of the list when answering how to choose an internal successor.
Today’s employees expect transparency, so you should ask yourself whether your proposed successor will be able to honestly and openly explain any changes they are making with good reasons for those changes.
6. A True Internal Successor
On the more practical side, the first place to start looking for your possible successor is inside the company. Promoting someone who has proven themselves can be a benefit because they know the ins and outs of how the business works.
Even though they will have their own perspective on the company and how it should work, an internal successor will have regard for what you did as a leader, fit their choices into your work, and extend what you started.
7. A Timeline for Choosing a Successor
It’s both practical and important to create a timeline for choosing and training your successor, which can help ensure their success. However, the decision and the work have both emotional and practical elements.
How will you impart knowledge of the business’s internal workings at the same time you are giving the newly named company leader the latitude to show their own personality and management style? How will you transition from decision-maker to adviser to emeritus/a?
8. Checking Compliance
A final practical detail in choosing an internal successor, if the business is organized as other than a sole proprietorship, is to check all legal documents to ensure you comply with them.
How BlueStone Services Can Help You Learn How to Choose an Internal Successor
If you’re not sure where to begin with how to choose an internal successor, our experienced professionals can help you get started.
Contact us today to solidify the legacy of your business.
